After closing in the red last week, the markets have started this week on a positive note helped by global cues. The Nifty regained the psychological 6,000 mark, closing at 6,010, up 120 points. The Sensex rallied 372 points to close at 19,958. The rally today was led by Bankex,Consumer Durables and IT stocks.
In the broader markets too, the upswing was reflected. The smallcap index gained 1.5% while the midcap added 1.3%. The benchmark index outperformed gaining nearly 2%.
Depsite today's bounce, Deepak Singh, Sound Equity & Consulting believes that the outlook is still negative, and the Nifty will face strong resistance in the range of 6050-6100.
Earlier the day, the markets opened on a firm note with positive cues from the Asian markets which rose on reports of Ireland formally applying for aid from the European Union and the International Monetary fund. However, the market pared some of its gains in the morning trade only to regain them in the mid morning trades.
All the sectoral indices closed in the green. Capital Goods and Health care were the laest gainers in today's trade. Indusind Bank, Kotak Mahindra Bank and Bank of India gaining 3% -4% lead the banking stocks rally.
On the Asian front, Hang Seng and Shanghai Composite have closed in the red, shedding 0.3% and 0.1% respectively. Earlier, on November 19th, China raised its reserve requirement ratio for banks by 0.5%, mainly aimed at taming inflation.Nikkei, Seoul Composite and Taiwan Weighted added 0.2% -0.8%
Encouraged by the Ireland news, the European indices have opened and continue to trade in the green. FTSE and CAC has gained 0.6% while DAX added 0.7%. The US index futures were trading higher.This indicated that the Dow could rise 54 points at the opening bell.
In the Sensex- 30 stocks, Wipro (Rs 418) and Jaiprakash Associates( Rs 125)closed up 4% followed by DLF (Rs 318), Tata Motors (Rs 1227), HDFC Bank (Rs 2373) and Tata Steel (Rs 623) gained 3% each.
In an upswing market, the only losers were NTPC (Rs 183), L&T (Rs 2041) and Sterlite (Rs 175) shedding 0.1% - 0.6%
The market breadth was very positive. Of the total 3085 stocks traded, 1908 stocks had advanced while 1067 had declined. However, going ahead global factors have to be monitored as they can surprise the markets on the downside, says Sudhakar Shanbhag, CIO, Kotak Life Insurance. He further adds, if risk aversion returns or asset allocations change it can create level wise nervousness for the market or on the upside, or if FII inflows continue we can head higher. So that’s something we are looking at for the next 6-12 months.
In the long list of IPOs to hit the market, India-focused oil and gas firm Jubilant Energy are also planning to raise $85 million through an initial public offering to fund future exploration and the development of its assets.
Power Grid Corporation almost tripped ahead of listing of new shares. The stock was in red for the major half of the day, only to recover in the last hour of trading.The (FPO) of the state-run transmission firm closed with 14.88 times subscription.